Directors are not liable for debts owed by a company.[1]
If bailiffs takes money from a company director for a debt owed by a company, he may recover it, or if the bailiff clamps a vehicle not belonging to the company, the owner can make a third-party claim[2] and the court can order the bailiff company to pay the owner's legal costs.[3]
Some bailiffs think they can legally enforce company debts against its directors at their homes.[4] but this argument is flawed because regulations state the enforcement agents may only take control of goods where the debtor carries on a business or trade,[5] and bailiffs must apply to the court separately if they want to enforce at an address not specified on the writ.[6]
If the debtor company does not carry on a trade or business at the director's home, the bailiff is acting in breach of regulations that state they may only take control of goods at the company's trading premises and may recover any money taken.[7]
If bailiffs threaten to attend on a director at home that is not the premises the company trades, the director may apply for an injunction to stop the unlawful action.[8]
If you are a director, you must give the bailiff company, and if known, the bailiff an opportunity to cease and desist their action by exchanging correspondence and information so they understand your position, and try to reduce your costs before applying to the court.[9]
If the bailiff rebukes your notice, continues with enforcement or attends on you, apply to the court[10] for an injunction, and apply for your costs[11][12] and any financial damages.[13] If needed, you can apply for an emergency application to stop the enforcement.[14][15]
Template letter and email.[17]
Pre-action protocol notice of intention to apply for an injunction stopping enforcement against a director at home for a debt owed by a company not trading from there.
Make a screenshot of the sent email recording the date you gave it, and get a certificate of posting when sending it by Royal Mail[16]
Never use recorded delivery when giving a pre-action protocol notice.
[1] Paragraph 10 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[2] Civil Procedure Rule 84.16
[3] Civil Procedure Rule 44.2
[4] According to: The Sheriffs Office
[5] Paragraph 14(6) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[6] Paragraph 15 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[7] Paragraph 66 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[8] Section 3 of the Protection from Harassment Act 1997
[9] Practice Direction 3 of the pre-action conduct and protocols
[10] Practice Direction 13 of the pre-action conduct and protocols
[11] Civil Procedure Rule 44(3)(5)(a)
[12] Practice Direction 16 of the pre-action protocol
[13] Part 27 of the Civil Procedure Rules
[14] Section 4 of the Torts (Interference with Goods) Act 1977
[15] Section 3A of the Protection from Harassment Act 1997
[16] Section 7 of the Interpretation Act 1978
[17] Rule 6, Practice Direction – Pre-Action Conduct And Protocols
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